How are BMED collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the BMED collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $175.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BMED collar?

The breakeven for the BMED collar priced on this page is roughly $31.25 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current BMED market-implied 1-standard-deviation expected move is approximately 10.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BMED implied volatility affect this collar?

BMED ATM IV is at 35.70% with IV rank near 5.94%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

BMED Collar Strategy

BMED (iShares Health Innovation Active ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

BMED focuses on total return by investing in the broad health sciences group of industries from R&D to production and distribution of medical supplies in different fields, including dental, optical or pharmaceuticals. It also involves healthcare providers including health facilities and hospitals or those providing related administrative, management or financial support. The fund reaches into non-human health (e.g., survival of plants and animals) such as firms that increase crop yields, taste, nutritional content or improve pet health. BMED will include firms with varying market-cap with bias to small- and mid-caps that may include foreign non-USD-denominated securities. The fund may also hold REITs that own hospitals and IPOs. During temporary defensive periods, the fund may invest up to 100% of assets in liquid, short-term investments and can enter in credit default swaps for risk management.

BMED (iShares Health Innovation Active ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.6M, a beta of 0.80 versus the broader market, a 52-week range of 24.5-32.185, average daily share volume of 3K, a public-listing history dating back to 2020, approximately 79 full-time employees. These structural characteristics shape how BMED etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.80 places BMED roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BMED pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BMED?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

Current BMED snapshot

As of June 29, 2026, spot at $31.23, ATM IV 35.70%, IV rank 5.94%, expected move 10.23%. The collar on BMED below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 53-day expiry.

Why this collar structure on BMED specifically: IV regime affects collar pricing on both sides; compressed BMED IV at 35.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.23% (roughly $3.20 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BMED expiries trade a higher absolute premium for lower per-day decay. Position sizing on BMED should anchor to the underlying notional of $31.23 per share and to the trader's directional view on BMED etf.

BMED collar setup

The BMED collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BMED near $31.23, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BMED chain at a 53-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 BMED shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$31.23	long
Sell 1	Call	$33.00	$0.65
Buy 1	Put	$30.00	$0.67

BMED collar risk and reward

Net Premium / Debit: -$3,125.00
Max Profit (per contract): $175.00
Max Loss (per contract): -$125.00
Breakeven(s): $31.25
Risk / Reward Ratio: 1.400

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

BMED collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BMED. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$125.00
$6.91	-77.9%	-$125.00
$13.82	-55.8%	-$125.00
$20.72	-33.6%	-$125.00
$27.63	-11.5%	-$125.00
$34.53	+10.6%	+$175.00
$41.43	+32.7%	+$175.00
$48.34	+54.8%	+$175.00
$55.24	+76.9%	+$175.00
$62.15	+99.0%	+$175.00

When traders use collar on BMED

Collars on BMED hedge an existing long BMED etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

BMED thesis for this collar

The market-implied 1-standard-deviation range for BMED extends from approximately $28.03 on the downside to $34.43 on the upside. A BMED collar hedges an existing long BMED position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current BMED IV rank near 5.94% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on BMED at 35.70%. As a Financial Services name, BMED options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BMED-specific events.

BMED collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. BMED positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BMED alongside the broader basket even when BMED-specific fundamentals are unchanged. Always rebuild the position from current BMED chain quotes before placing a trade.

Frequently asked questions

What is a collar on BMED?: A collar on BMED is the collar strategy applied to BMED (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With BMED etf trading near $31.23, the strikes shown on this page are snapped to the nearest listed BMED chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BMED collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the BMED collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $175.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BMED collar?: The breakeven for the BMED collar priced on this page is roughly $31.25 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current BMED market-implied 1-standard-deviation expected move is approximately 10.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BMED?: Collars on BMED hedge an existing long BMED etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current BMED implied volatility affect this collar?: BMED ATM IV is at 35.70% with IV rank near 5.94%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.